TMI Blog2016 (6) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... f foreign travel expenses of ₹ 2,36,218/-, which has been enhanced by the CIT(A) from ₹ 1,74,520/- made by the AO , we have observed that no notice of enhancement of income was given to the assessee by the CIT(A) before enhancement of the income and in our considered view this issue needs to be set aside to the file of CIT(A) for fresh adjudication after giving proper notice of hearing to the assessee with respect to proposed enhancement of income and after giving proper and adequate opportunity of being heard to the assessee in accordance with principles of natural justice in accordance with law. - Decided in favour of assessee allowed for statistical purposes. - I.T.A. No. 5088/Mum/2014 - - - Dated:- 29-4-2016 - Shri Sakti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to ₹ 2,36,218/- without giving reasonable opportunity as mentioned in sub section 2 of section 251 of the Income Tax Act, 1961. He ought to have given opportunity to show cause against such enhancement. 4. Your appellant company craves leave to add, to amend, to modify any of the aforesaid grounds or take an additional ground of appeal, if need be. 3. The brief facts of the case are that the assessee is a firm of Chartered Accountants. The assessee s source of income consists of income from business or profession and income from other sources. The assessee has claimed ₹ 12,22,557/- towards sundry expenses. The assessee was asked by the AO to submit documents in support of the claim. The assessee submitted only break- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details and supporting documents were forwarded by the CIT(A) to the AO. The AO furnished his comments in remand report that expenses of ₹ 45,000/- in respect of Diwali sweet and Pooja expenses, snacks, it was observed that though the bills are on record, the expenses are not incurred wholly and exclusively for business purpose. Water charges, wedding expenses and staff welfare expenses are supported by self made vouchers, the AO in remand report observed that the element of personal usage cannot be ruled out. The assessee submitted before the CIT(A) in reply to remand report proceedings of the AO that the assessee is a professional firm of eleven partners who were chartered accountants, 55 employees and consultants and 65 arti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he terms of employment paid along with monthly salary. Thus it was requested by the assessee that the entire additions of ₹ 2,44,511/- be deleted. Learned CIT(A) considered the submissions and held that certain expenses were supported by self made vouchers and certain expenses are in the nature of entertainment, element of personal usage cannot be ruled out and hence additions were restricted to ₹ 50,000/- instead of ₹ 2,44,511/- by the CIT(A) vide orders dated 21.3.2014. 7. Similarly with respect to the foreign travel expenses, details were forwarded to the AO by the CIT(A) for remand report and the AO held that the travelling expenses incurred by the assessee is supported by vouchers but personal element cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal. 9. The assessee reiterated the submissions as were made before the authorities below. The submitted that the sundry expenses of ₹ 50,000/- has been disallowed by the CIT(A) on the grounds that element of personal usage cannot be ruled out, while disallowance of foreign travelling expenses have been enhanced from ₹ 1,74,520/- to ₹ 2,36,218/- by the CIT(A). No notice of enhancement has been given to the assessee by the CIT(A). All details were furnished before the CIT(A) with respect to the disallowance of ₹ 50,000/- on account of sundry expenses incurred by the assessee. 10. Learned Departmental Representative supported the orders of the authorities below with respect to the disallowance of ₹ 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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